For Institutions
Research funded by The Andrew W. Mellon Foundation documented that retirement rates are slowing and that health care funding and access are major concerns of faculty as they make their retirement decisions. Increasing health care costs, aging baby boomers, growing Medicare deficits and expanding accounting liabilities for defined benefit retiree medical programs necessitate drastic changes in current post-retirement benefit designs. Many institutions are choosing to reduce or eliminate their benefits out of financial necessity.
The Emeriti Program’s comprehensive solution is designed to meet the needs of an institution without any retiree health program, or it can replace an existing plan. Each Consortium member designs a distinctive plan to meet its cultural and financial needs, within overall Program guidelines and rules.The presence of a retiree health insurance benefit and financial assistance with premiums can advance retirement by 18 to 36 months among older faculty.
Institutional advantages include:
- Reduced costs for salary and salary-related benefits if senior employees can be replaced with junior, lower-salaried employees
- Lower active health insurance rates as older employees move to Medicare-primary coverage
- Less reliance on retirement incentive packages
- Ongoing opportunities for institutional renewal
- Potential for reducing and ultimately eliminating FAS 106 or GAS 45 unfunded liabilities
